JANUARY IS TAX RETURN TIME, RIGHT? WRONG! HERE’S WHY…
Since tax returns are due by January 31st, many people are under the illusion that the wintry month is the best time to file. This notion, while widespread, is incorrect.
Although the returns are due by the end of January (aside from certain exceptions), they are issued on the 6th of April of the previous year. This means that there more than nine months available in which to fill out your returns, assess your fiscal year and get that weight off of your shoulders. In almost all cases, it’s entirely possible for you to complete the necessary documentation by the end of May or June.
With this in mind, why do a high percentage of people leave it until the last minute? If you do too, why? Not only does this put added pressure on you to complete the forms, but it can also leave you financially out of pocket and cause no end of headaches.
FOUR REASONS WHY YOU SHOULD FILE YOUR TAX RETURN EARLIER
There are numerous advantages to getting the unpleasant task of tax returns out of the way sooner rather than later. Among others, these include:
- No last minute panic – Have you ever found yourself searching for an accountant that has enough time to take on your records for a reasonable price in January? Or worse, have you attempted to personally tackle your tax return at the last minute? Save yourself from the inevitable stress and headaches by tackling the problem in advance.
- The ability to budget accordingly – Filing your tax return in late spring or early summer affords you the luxury of knowing how much (if any) you owe the government. This gives you the opportunity to plan out a repayment strategy for your tax bill in plenty of time – which can be invaluable in avoiding slipping into the red when you finally get around to it at the start of the New Year.
- Time to collect missing items – Misplaced that receipt for a costly business expense? Can’t find important records? Such a discovery can induce the sort of blind panic outlined in the first bullet point. Learning of a discrepancy or missing item in May or June gives you more than half the year to track it down. Unpleasant surprises are even nastier when there’s an impending timescale involved.
- Lower accountancy fees – January is notoriously a busy time for accountants, since they are inundated with last-minute requests to sort through everybody’s tax returns. The high workload means that getting hold of an available accountant can be a tricky business on its own – never mind factoring in the extra fees. Take advantage of the lower rates afforded by many professionals during off-peak months to save your bank balance and your stress levels.
CAN WE HELP?
Filing your own tax returns can sound like an attractive prospect in terms of the accountancy fees you’ll save – however, this is a very short-sighted view. The likelihood of you making a mistake when completing the myriad of forms is very high, which could lead to increased fees and fines at a later date.
At UWM, we are fully qualified in handling tax returns and taking the stress out of dealing with HMRC. Furthermore, we are also able to give you expert advice on devising strategies which can reduce your tax arrears in the fiscal year to come.
To find out how we can help you, call us on 0113-231-0202 or send us an email at email@example.com.
Don’t wait until January – get in touch today!